Still early on...Amazing how John Lee just keeps chipping his way forward. The coal was just sitting there in the stockpile, and needed to go somewhere. He does 5 small deals, for less than one month's production (plan) in total. It tells every other buyer/ supplier in the region that he's open for business. It prevents his stockpile from becoming a "dump". It keeps the trucks moving. It creates revenue/ demand/ excitement/ visibility.
I wonder how long it took the phone to ring with another p/o and further interest. Key for me was the repeat order after his initial small deal in June. A repeat Russian Customer. Imagine that. I would be willing to bet, some call it investing, that the orders will keep on coming, and they will just keep getting larger and larger on the volume side.
Recent news out of the region shows continued strong demand from China, with transport costs, and quality of coal being China's main concern; mainly on coking coal, but also thermal. What about Japan, then Russia, then Korea, then... We have PCY's current "way under-valued" status, a Major major market all around us, what looks like a very strong relationship with a pro-mining Mongolian Gov, and a work-his-rear-end off CEO who is heavily invested. We are also headed into a seasonal upswing on the back of increased demand and tightening supplies (quality).
For a free read, if you are interested, check out
https://coalinvestingnews.com/3703/Chinese-coal-imports-surge/. You might find them a decent site for non N.A. coal news.
I have been in and out many times on this going back to Red Hill. So far John has spun off ELI, and NKL (how did that one grab you!) as dividends, and proven he could take a resouce play, into production. He's now in the beginning stage of his sales push. He did all this in what was once considered a very hard place to do business. He has overcome all obstacles thus far. He's now at a critical stage. The guy just keeps chipping away. It's great to watch.
You'll never see me saying "get in now", or "rocket-ship to the moon", but this one is one heck of a special looking "Junior". Good luck to all of you. It should be one heck of a ride towards the close of 2011.